Mah Sing Group to launch new M Residence@Rawang, a 226acres freehold township-------------------------------------------------------------------------------------------------

Mah Sing Group Berhad intends to launch linked beginner homes indicatively priced from RM390,000 as early as the first half of 2012 in its new 226 acre freehold township, M Residence@Rawang. The township has an estimated gross development value of approximately RM948million and preliminary plans include two-storey link homes, townhouses, semi detached homes, three-storey shops and various facilities and amenities.

A shares sale agreement was inked today to acquire the entire issued and paid up share capital of the registered owner of the land, Semai Meranti Sdn Bhd for RM57million. The cost of investment in the company and liabilities assumed at approximately RM35million will be less than 10% of the potential gross development value for M Residence@Rawang. The master layout and development order for mix development has been obtained and registration of interest for the project is expected to commence in the fourth quarter of 2011. M Residence@Rawang is expected be developed over three to four years and the Group is also actively scouting for more well located mega township lands which fit the Group’s business model of quick turnaround and allow for value enhancement.

Mah Sing Group managing director cum group chief executive Tan Sri Datuk Sri Leong Hoy Kum said, “This is our third land deal this year and we want to replicate the success of our award winning Aman Perdana township in Meru-Shah Alam as well as Kinrara Residence in Puchong and Garden Residence in Cyberjaya where we have created self contained, secured lifestyle townships. We intend to price the properties in M Residence@Rawang within reach of first time home buyers in line with the Government’s call for more affordable housing by private developers.”

Tan Sri Datuk Sri Leong noted, “M Residence@Rawang is exceptionally well connected. It only takes 20 minutes to get to the Rawang toll from Kuala Lumpur (Jln Duta toll) and Petaling Jaya (Damansara toll). In terms of distance, it is only 28km from both tolls. From the Rawang toll, it is less than 10 minutes or 10km to the project. A major road upgrade to turn the road into a dual carriageway from the junction of the Rawang toll to the junction of the main road to Bandar Tasik Puteri is in progress, and shall improve the traffic flow along this road. M Residence@Rawang can also be accessed via the Kuala Lumpur-Kuala Selangor Expressway (formerly known as Latar Highway).”

M Residence@Rawang is only 5km from the matured townships of Anggun 1&2@Kota Emerald and 8km from Emerald East and West. Just 5km away, a new Jusco Shopping Centre is under construction and is expected to be completed by the end of 2011.

Tan Sri Datuk Sri Leong added, “M Residence@Rawang is a prime example of our quick turnaround business model as the location is easily accessible and development order for the project has been obtained, allowing a quick launch in the first half of 2012. We only need to refine the product mix to meet current market demand, and we see this as mass housing targeting first time and younger middle class home buyers over the next 12 to 24 months. We are targeting those who want to upgrade to a well planned mixed development and as with our other townships, we intend to offer more up scaled properties once we draw in the critical mass.”

A decade of experience in lifestyle townships Since year 2000, Mah Sing has been one of Malaysia’s market leaders in township developments and currently has four townships in Johor Bahru as well as three in the Klang Valley. Tan Sri Datuk Sri Leong noted, “Our townships have received various local and international design awards and as a lifestyle developer, we think out of the box to exceed buyers’ expectations. With 36 projects spread across Malaysia, we treat each project as a special opportunity to enhance the lifestyle of our buyers. Each new launch which comes up allows us to raise the bar in developing quality lifestyle properties for our buyer, whether it is a medium, medium high or high end project.”

Balancing the portfolio for continued earnings visibility, targeting more landbanking for mega townships Mah Sing has been enjoying record sales, with RM1.74billion or close to 90% of its 2011 sales target of more than RM2billion locked in as at 15 September 2011. The bulk of its current unbilled sales of RM1.9billion comes from its medium high to high end residential, commercial and industrial projects, and will underpin near-term earnings sustainability. This latest acquisition of M Residence@Rawang brings the Group’s remaining gross development value and unbilled sales to RM15.4billion, and with a healthy balance sheet and low net gearing of 0.21 times as at 30 June 2011 coupled with its cash pile of approximately RM803million, Mah Sing has a landbanking warchest exceeding RM1billion.

The Group is keen on both privately held land as well as Government lands that will be developed by the private sector. Tan Sri Datuk Sri Leong noted, “Given our expertise in township development and the shift of market demand towards mass housing for the next two years, we are actively scouting for even more well sited mega landbanks to develop townships which will allow us better masterplanning for value adding.”

A property to meet every need “Mah Sing is a fully integrated developer as we have developments ranging from landed double storey link homes, semi detached homes and bungalows, small units of high rise developments namely Small Office Home Office (SoHo) and Small Office Versitile Office (SoVo) in the city, commercial like shops and retail units, semi detached factories and also integrated mixed developments. Our strong sales-to-date proves that well located properties with good concept and design offered by branded developers will still do well. Property as always been seen as a good hedge against inflation as astute buyers lock in their investments at today’s prices, and in the current property cycle, you will never go wrong with mass market housing in good locations,” Tan Sri Datuk Sri Leong noted.